The retail and consumer packaged goods (CPG) industry is well placed to take advantage of blockchain opportunities which could revolutionise their operations and processes, according to findings from a new Deloitte report.
Blockchain is a digital, decentralised, distributed ledger that provides a way for information to be recorded, shared and maintained by a community (whether private and public). The research, New tech on the block, aims identify where blockchain could have the greatest impact within the retail and CPG industry.
The numerous business applications for blockchain in these sectors can be categorised by their impact on the consumer, the supply chain, and payments and contracts. Business leaders need to be strategic in choosing which parts of the businesses could benefit most from investment in blockchain.
“Retailers and consumer businesses are constantly being told that blockchain is the next big thing. However, it is crucial for decision makers to understand which areas of the value chain will benefit most from the new technology, and how easy it is to implement” said Steve Larke, technology consulting partner at Deloitte.
“It is technology that has the ability to track, trace, and authenticate products, record contracts and transactions and guarantee the movement of information. Significantly, the benefits can then be passed on to the consumer in the form of savings, increased trust, and safer, higher-quality products.
“As we enter the ‘age of blockchain’, the retail and CPG sectors are particularly well placed to capitalise on this technology and revolutionise the way many processes are conducted. Businesses that do not consider how blockchain could help are at risk of falling behind competitors.”
Out of the blocks, not a stumbling block
The research identifies various blockchain use cases for the industries and ranks these cases based on their impact and complexity. A ‘know your supplier’ solution which would allow businesses to store information about their suppliers and seamlessly execute payments and contracts at the point of fulfilment, has been identified as the number one opportunity for businesses.
Other blockchain cases are harder to implement but could equally carry huge value opportunities, for example, a ‘Connected Supply Chain’, could provide a seamless end-to-end ledger from manufacturing to fulfilment, whilst an ‘Authenticity & Provenance’ solution, could verify a product’s genuineness, protecting businesses and consumers from counterfeiting.
“Trialling projects and exploring opportunities will be important in order to determine the complexity of implementation. Projects that offer greater value relative to investment in the short-term will obviously be more attractive to business decision makers. Without question, there are some areas that will see rapid value gains based on relatively simple implementation”.
“Blockchain technology is expected to achieve widespread, mainstream adoption sooner rather than later. Retail and CPG businesses need to act now and plan for future blockchain adoption, or risk being left in the dust” added Larke.
For additional information or to view the report “New tech on the block: Planning for blockchain in the Retail and Consumer Packaged Goods industries” click on the link https://bit.ly/2xnms06.
About the report
New tech on the block: Planning for blockchain in the Retail and Consumer Packaged Goods industries, is based on the analysis of 16 blockchain use-case groups. These were developed from an initial analysis of over 50 use cases which were shortlisted and combined to cover the breadth of the retail and CPG markets and potential blockchain applications.
The analysis measured both the potential impact of the blockchain use-case group and the complexity of implementing it in a business. The complexity criteria applied to the analysis is based on the level of business change required, unique participants and active participants (volume), the number of services and whether the use-case has been tested before.